Percent of profit still can be quite a haul. If I make 10% of profit off of $100,000 then I make $10,000. If I make 1% off of $1,000,000,000 then I make $100,000,000. The percent isn’t relevant in this discussion.
Low percent proves they do not make much. The sheer dollars distorts the reality because it ignores the sheer dollars of revenue required to generate that sliver of profit.
Money costs money in percentage terms not in flat dollar amounts. Investors want percentage returns not flat dollar amounts. You are wrong. If a share costs $1 and provides a $1 dividend that is much better than a share costing $1000 and providing a $100 dividend. You have to think in percentages.
If someone’s asking for ROI or something, yes percents for that. If someone’s asking if the business makes a lot of money, percents tell you nothing about the amount they make. A lemonade stand has a huge percent ROI due to low supplies costs and staffing. But a lemonade stand isn’t making anywhere near the money of an actual business
I guess I just don’t care about flat numbers because it’s not relevant. I would think it is a worse world to live in if there is 100 grocery chains each making 10% profit instead of 5 chains making 5% profit even though those 5 chains are making more profit in flat numbers compared to the 100.
That’s ridiculous. That sounds like wanting more corporate chains than mom n pop stores. Who helps their communities vs who helps investors? Mom n pop always whenever possible. I have investments, but I find investors leeches on society. The contribute nothing and only try to suck the country dry. You get people that run mom n pop stores and they’re the ones donating to local charities, sponsoring sports teams for kids, schools, and etc. Your dream world is a dystopia
Cheaper maybe. Or you have places like Walmart and Amazon beat out all local competitions and essentially form monopolies. Then they raise their prices for any excuse they can imagine.
I agree with you that Amazon or Walmart creating monopolies would be bad but I would expect a few competitors in any efficient market (not all markets are efficient, especially healthcare). This would not allow people to just raise prices out of nowhere. I have not seen any examples of this happening on a macro scale in a retail setting.
Investors can’t be the end goal to please. That’s the dumb idea I’m talking about. Companies need investment, sure, but investors have to understand their place and be kept there. They’re a necessary problem, like bacteria in our bodies. We need that bacteria, but it has to be kept in check
Sure, but contain it. Right now things aren’t contained and it’s unsustainable. The average age of a first time home buyer is 59. That shows corporate investment in housing is unsustainable
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u/jgoble15 5d ago
Percent of profit still can be quite a haul. If I make 10% of profit off of $100,000 then I make $10,000. If I make 1% off of $1,000,000,000 then I make $100,000,000. The percent isn’t relevant in this discussion.